The cable opens this week at 1.5570 remaining within the same previous consolidation range 1.5480-1.5590.
Last Friday, the daily candlestick quickly tested 1.5480 (50% Fibonacci) showing obvious bullish rejection.
Last week, there was a supply zone located around 1.5550-1.5600 corresponding to the upper limit of the depicted bullish channel. However, no significant bullish rejection was expressed till now.
Although the bullish steam seems to weaken on trading above the 100-day SMA and Fibonacci 50 level, the cable has its way open towards 1.5650 (61.8% Fibonacci Level).
Resistance levels: 1.5650 and 1.5850.
Support levels: 1.5380, 1.5230, and 1.5030.
The cable has been consolidating within a consolidation range 1.5500 -1.5590 after testing the upper limit of the ongoing movement channel as depicted on the chart.
Stabilization of the supply zone at the upper limit of the channel at 1.5590 allows a double top reversal pattern to be anticipated and confirmed with 4H closure below 1.5500, the bearish momentum will be targeting at 1.5430, 1.5365 then at 1.5200.
The cable has dependable demand level around 1.5365 which will probably provide a valid BUY entry on the next bearish retracement.
Fundamentally, today the market movement is expected to be sluggish as this Monday is a holiday for banks in the UK.
